DALLAS, TX -- (MARKET WIRE) -- 01/06/09 -- Metiscan, Inc. (PINKSHEETS: MTIZ), a national provider of products and services that streamline the management and operation functions of diagnostic imaging facilities and an operator of two diagnostic MRI facilities, announced today that its wholly owned subsidiary, Metiscan Technologies, Inc. (Technologies), has negotiated approximately $1.97 Million in debt forgiveness with its largest unsecured creditor.
"Technologies has struck a deal with its largest unsecured creditor. Prior to the debt forgiveness, Technologies owed this creditor approximately $2.49 Million in outstanding unsecured debt that had been accrued by its former operators," commented Bryan A. Scot, President and CEO. "After multiple discussions regarding Technologies' business plan and asset sale to another Metiscan wholly owned subsidiary, Metiscan Managed Services, Inc., we were able to come to an agreement that made sense for all parties."
Details of the debt forgiveness included forgiveness of $1,230,860 in outstanding promissory notes, $100,515 in accrued interest, and $642,083 in other various loans made to the Company since 2006. Concurrently, Management negotiated the refinancing of the remaining balance of the unsecured debt, totaling $526,345, over 5 years at an interest rate of 8%, with principal and interest payments due in one lump sum in December 2013. The $1.97 Million in debt forgiveness will be reflected in the company's 4th quarter financial statements.
Metiscan management is also in the process of renegotiating, restructuring, and requesting debt forgiveness from some of its other debtors and creditors, including its newly acquired MRI subsidiaries having operations located in Corpus Christi, TX and Pottsville, PA. Management's goal is to free up cash flows in order to upgrade and expand the IT infrastructure and RIS/PACs software systems in its wholly owned subsidiary, Metiscan Managed Services, Inc., and upgrade its MRI equipment in its diagnostic MRI facility located in Pottsville, PA.
"Overall we have had positive conversations with our debtors and creditors thus far. They have been really positive due to the recent change in ownership and management," commented Jacob Cohen, Metiscan's Executive Vice President. "We feel positive about receiving further debt restructuring."
